TARZANA, CA - Gelt, Inc., a Los Angeles-based real estate investment and asset management firm, has sold Monterra Ridge Apartments, a 232-unit residential, community for $62.5 million. The property, which is located in Santa Clarita (Los Angeles County), was sold to Culver City-based BAG Investments.
Built in 1985, Monterra Ridge is located at 28085 Whites Canyon Road. The pet-friendly 16-building community is situated on just under 22 acres and includes 88 one-bedroom/one-bathroom units and 144 two-bedroom/two-bathroom units. It features covered parking; fitness center; sand volleyball court; clubhouse with a community room; and swimming pool and spa.
Gelt acquired the property in June 2016 for $45.5 million and embarked on a capital improvement program that included renovating approximately 65 percent of the unit interiors with upgrades including new cabinetry faces and fixtures, stainless steel appliances, vinyl-plank flooring in the living room, and new ceiling fans, among other upgrades.
“After executing on our value-add improvement plan, and noting a healthy multifamily sales market in Southern California, our team at Gelt determined we could hit our projected eight-year investment goal after just three-and-a-half years into our investment. We decided it was a good time to sell,” said Keith Wasserman, Co-Founder and Partner with Gelt. “The new ownership has additional opportunities to add value through renovation of the remaining interiors as well as realize appreciation in the thriving and business-friendly Santa Clarita Valley.”
Jeff Harris, Partner with Gelt added, “We have been seeking to grow our portfolio in key western region markets and will be soon be trading the proceeds from this sale into a marquee multifamily asset in the Denver region.”
He noted that in 2020, Gelt is looking to acquire $300 million of multifamily assets in Denver, Salt Lake, Portland, Seattle, Southern California, Albuquerque, and Reno.
Gregory Harris, Kevin Green and Joseph Grabiec from Institutional Property Advisors, a division of Marcus and Millichap, represented both sides of the transaction.
About Gelt, Inc. Gelt Inc. is a regional real estate investment and asset management company that seeks to acquire properties in strategic markets in the Western U.S. Since the company's inception in 2008, Gelt has acquired more than 10,300 apartment units, RV and mobile home sites, self-storage units and apartment units in development valued in excess of $1.56 billion. The firm’s philosophy is to be a prudent steward for its investment capital, to invest wisely, with confidence and intelligence in emerging, constrained markets. Gelt seeks appropriate risk adjusted returns while achieving income from current cash flow and appreciation through superior performance of its assets.
Gelt consists of a team of real estate professionals that possess a wealth of knowledge and expertise in law, real estate, finance, property and asset management, and construction.
Gelt’s affiliated companies include Domuso.com and Gelt Venture Capital. Gelt developed Domuso.com, the first financing-as-a-service resident portal for the $540 billion rental payment industry. Domuso offers online certified and financing options for move-in payments, one-time rent payments, debt payments, refunds, and late payments. The company developed its own proprietary risk scoring model to offer point-of-sale financing utilizing rental application data, property operational data, and historical payment history. Gelt Venture Capital is a seed-stage venture capital firm investing in companies capable of making a large global impact. We believe automation, mobility, robotics, artificial intelligence, and space tech form the fundamental technology layer are transforming our world and we focus on applications of these foundational technologies.
In 2017, Keith Wasserman and Damian Langere, co-founders of the Gelt companies, established the Resident Relief Foundation, a 501(c)(3) public nonprofit whose mission is to provide temporary rental assistance grants to responsible renters going through an unexpected financial crisis that was outside the residents’ control. Examples include medical emergencies, natural disasters, job gaps, auto accidents, and government subsidy discrepancies. These residents prove they can recover with a little help, have paid rent on time and are otherwise good residents wishing to stay in their apartments. They must complete an online financial education program as a condition of the grant. The grant is paid directly to the property on their behalf. RRF has helped a significant number of individuals and families recover and avoid homelessness.